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The prices of zero-coupon bonds with various maturities are given in the following table.

Suppose that you want to construct a 2-year maturity forward loan commencing in 3 years. The face value of each bond is $1,000.

Maturity (Years)	Price
1	$925.93
2	853.39
3	782.92
4	715.00
5	650.00

a. Suppose that you buy today one 3-year maturity zero-coupon bond. How many 5-year maturity zeros would you have to sell to make your initial cash flow equal to zero? (Do not round intermediate calculations. Round your answer to 4 decimal places.)

5-year maturity zeros

b. What are the cash flows on this strategy in each year? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Time	Cash Flow
0	$
3	$
5	$

c. What is the effective 2-year interest rate on the effective 3-year-ahead forward loan? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

2-year interest rate %

d. Confirm that the effective 2-year interest rate equals(1 + f₄) (1 + f₅) 1. You therefore can interpret the 2-year loan rate as a 2-year forward rate for the last 2 years. (Do not round intermediate calculations. Round your Forward rates and YTM as a percentage rounded to 2 decimal places. Round your final answer to 2 decimal places. Omit the "%" sign in your response.)

2-year loan rate %

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